Arbitrage funds cash in on pricing differentials between the cash and derivatives markets
Fixed maturity plans and debt funds came into the spotlight after the Budget tax tweaks. Arbitrage funds too burst upon the scene for the same reason. L&T and Axis Mutual Funds, for instance, both launched arbitrage funds in July and August.
Gaining from differences
Arbitrage occurs when you gain from buying and selling the same security at different prices in different markets. Funds built on this theme look at two main mispricing opportunities.
Read More ->
